Novartis To Acquire Nektar's Pulmonary Business Unit
Novartis has signed a definitive agreement to acquire the pulmonary drug delivery business unit of biopharmaceutical company Nektar Therapeutics for $115M in cash.
The acquisition will be financed from the group's financial resources. Novartis will acquire research, development and manufacturing assets of Nektar's pulmonary business unit, including tangible assets as well as intellectual property and related expertise.
As a result of this transaction, future milestones and royalty payments from Novartis to Nektar for the tobramycin inhaled powder development project would be avoided. This transaction requires customary regulatory approvals and is expected to be completed by the end of 2008.
Important capabilities gained from Nektar, which has approximately 140 associates who will join Novartis and remain in San Carlos, California, include product formulation and delivery expertise along with a broad device platform. This transaction excludes Nektar's inhalation programs for insulin, vancomycin, ciprofloxacin and amikacin.
Novartis said that it will utilize these skills to build on existing capabilities and accelerate its pipeline targeting life-threatening diseases such as chronic obstructive pulmonary disease, asthma and cystic fibrosis as well as the life-cycle management of late-stage development projects that are closer to regulatory submissions. Potential applications will also be assessed in other areas of the Novartis healthcare portfolio.
Joe Jimenez, CEO of Novartis Pharma, the pharmaceuticals division of Novartis, said: "Through our existing collaborations, we have a high regard for the Nektar team and for their technologies, and these capabilities will play an important role in developing our respiratory pipeline."
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For full details on Nektar Therapeutics (NKTR) click here. Nektar Therapeutics (NKTR) has Short Term PowerRatings of 3. Details on Nektar Therapeutics (NKTR) Short Term PowerRatings is available at This Link.
SOURCE: Novartis